Insights: Financials

The Senate yesterday passed stablecoin legislation on a 68-30 vote, with the support of 18 Democrats. The House Financial Services Committee (HFSC) has passed both a stablecoin and broader crypto market structure bill in recent weeks. The House Agriculture Committee also passed the market structure bill. HFSC Chair Hill (R-AR) has to-date...

Energy, Financials, Healthcare, Macro, Tech / Media / Telecom

Senate Republican negotiations on changes to the House-passed reconciliation bill are intensifying. It appears that changes under consideration in the Senate increase the deficit by ~$600-700b beyond the House-passed bill’s $2.4t deficit impact, though there is consideration of adding provisions to try to close that gap. House conservatives are...

Energy, Financials, Healthcare, Macro, Tech / Media / Telecom

Senate Republicans have indicated that the committees responsible for various components of their emerging reconciliation legislation will be releasing draft text in the next couple of days. The Senate Finance Committee, which is responsible for taxes and entitlement programs (e.g., Medicaid, ACA) is likely to be last, with release of its text...

Financials, Housing

GSEs Exiting Conservatorship

Over the last week, President Trump has made two notable statements regarding a GSE exit from conservatorship. Last week, he posted that he is giving “serious consideration to bringing Fannie Mae and Freddie Mac public.” This week, he posted that the government “will keep its implicit guarantees.” Separately, Secretary Bessent reiterated prior...

Bank Capital/Liquidity (SLR)

Multiple press reports (stories here and here) indicate that the Trump administration is potentially within weeks of issuing revisions to the Supplementary Leverage Ratio (SLR). This is consistent with Secretary Bessent’s recent comments that implied SLR changes are on a fairly fast track, whereas Basel III/other capital reforms are not in as...

Bank Capital/Stress Tests

The Fed has issued a proposed rule to reform the stress testing framework for banks. The proposal would average the results of the stress tests over two years to reduce the volatility of banks’ capital requirements. Furthermore, the proposal would also give banks three more months to come into compliance with the capital requirements that are...